South Indian Bank vaults after decent Q1 results

South Indian Bank hit an upper circuit of 5% at Rs 8.37 after the bank's standalone net profit jumped 11.05% to Rs 81.65 crore on a 4.6% increase in total income to Rs 2,171.86 crore in Q1 June 2020 over Q1 June 2019.

Profit before tax slipped 1.8% to Rs 110.60 crore in Q1 FY21 as against Rs 112.62 crore in Q1 FY20. Provision for taxes dropped 26.4% to Rs 28.95 crore in Q1 FY21 compared with Rs 39.36 crore in Q1 FY20. The Q1 earnings were announced after trading hours, 8 July 2020.

The bank's gross non-performing assets (NPAs) stood at Rs 3,245.44 crore as on 30 June 2020 as against Rs 3,261.77 crore as on 31 March 2020 and Rs 3,154.22 crore as on 30 June 2019. The ratio of gross NPAs to gross advances stood at 4.93% as on 30 June 2020 as against 4.98% as on 31 March 2020 and 4.96% as on 30 June 2019. The ratio of net NPAs to net advances stood at 3.09% as on 30 June 2020 as against 3.34% as on 31 March 2020 and 3.41% as on 30 June 2019.

The bank's provisions and contingencies surged 42.95% to Rs 293.08 crore in Q1 June 2020 over Q1 June 2019. The provision coverage ratio of the bank was at 58.8% as on Q1 June 2020, higher than 45.1% in Q1 June 2019.

Net Interest Income (NII) rose 10% to Rs 587 crore in Q1 June 2020 as compared to Rs 536 crore in Q1 June 2019. Customer deposits grew 8% to Rs 82,469 crore in Q1 June 2020 as against Rs 76,544 crore in Q1 June 2019. Advanced rose 3% to Rs 65,819 crore in Q1 FY21 from Rs 63,652 crore in Q1 FY20.

The Current Account-Savings Account (CASA) jumped 12% to Rs 22,179 crore in Q1 June 2020 from Rs 19,719 crore in Q1 June 2019. The CASA ratio stood at 26.9% in Q1 June 2020 on comparison to 24.1% in Q1 June 2019.

South Indian Bank provides retail and corporate banking, para banking activities, such as debit card, third-party product distribution, in addition to treasury and foreign exchange business.

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